Finance-Led Growth and Agricultural Development in Emerging Economies: Evidence From Nigeria’s Anchor Borrowers’ Programme
DOI:
https://doi.org/10.51137/wrp.ijarbm.568Keywords:
Agricultural Finance, Anchor Borrowers’ Programme, Rural Development, Credit Access, Agricultural Output, NigeriaAbstract
This paper examines the impact of the Anchor Borrowers’ Programme (ABP) on agricultural development in Kwara State, Nigeria, with particular attention to access to credit, collateral requirements, lending rates, and loan repayment conditions. Using survey data from 370 farmers and an ordered logit regression model, the results show that improved access to credit and flexible repayment periods significantly enhance agricultural output, while stringent collateral requirements constrain productivity. Lending rates exhibit a negative but statistically insignificant relationship with output, suggesting that structural and institutional factors play a more decisive role than pricing mechanisms in shaping farmers’ outcomes. The findings support the finance-led growth theory and highlight persistent barriers to rural credit inclusion. Policy implications emphasize expanding loan access, reforming collateral frameworks, improving repayment structures, and strengthening supporting institutions to promote agricultural productivity, food security, and rural economic transformation.
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